Franchise Agreements (Part A)

When starting a franchise in New York, there are many things you need to know about the franchise process. One of the most important things you will have to do is sign a franchise agreement.

A franchise agreement is the legal document that binds the franchisor with the franchisee
and it spells out all of the business terms that the franchisee must agree to. It also assures the franchisee that they will be treated fairly as a business partner.

If you plan on starting a franchise in New York, and have questions about the franchise agreement, you can get the professional advice of a New York franchise attorney.

Details That Are Included In a Franchise Agreement

The franchise agreement will explain the relationship between the franchisor and franchisee. It will also include all of the obligations that must be met between the franchisor and franchisee.

When you are starting a franchise in New York, you will find that a complete and well-drafted franchise agreement will include details that explain every critical aspect of the business relationship. Listed below are some of the things to be included in a franchise agreement:

  • Contract Explanation - Outlines the relationship between franchisor and franchisee;
  • Operations Manual - Details the guidelines that the franchisee must follow. In this manual, the franchisor will outline the rules of operation. These rules are legally binding, and at times the franchisor may make amendments to this document. If amendments are made, the franchisee must be prepared to follow accordingly. Generally, the contents of this document are confidential, and must not be shared with anyone;
  • Proprietary Statements - Outline the use of the franchise name, as well as the marketing and advertising procedures that the franchisee must follow. These statements will also document the amount of money a franchisee must pay toward national advertising efforts; and
  • Rules for Ongoing Site Maintenance - Including rules for property maintenance, and upgrades that must be made to the franchisee's location.


For clarification regarding these aspects of the franchise agreement, you can contact a New York franchise attorney. When starting a franchise in New York, it is best to get the advice of a New York franchise expert early in the process.

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